Sun Chemical to Increase North America Packaging Ink Prices In 2008
Press release from the issuing company
Northlake, Ill., USA − December 3, 2007 − Faced with increases in the costs of raw materials and the impact of recent events in the global supply chain, Sun Chemical will raise prices 8 percent for packaging inks in North America effective January 1, 2008.
Despite Sun Chemical’s consistent efforts to improve productivity, Richard B. Pettifor, President, North American Packaging, Sun Chemical, stated that the aggressive action by the Chinese government to address environmental non-compliance in the chemical industry has resulted in supply shortages—driving the need for price increases in North America. Additionally, the efforts by the Chinese to curb environmental impact, coupled with their policy that eliminates export VAT tax refunds, have led to sharp pigment and resin cost increases.
Pettifor also cited the rapid rise in global prices for chemicals and metals used in the production of inks, coatings, and pigments, and the significant rise in oil prices combined with the current weakness of the U.S. dollar, as market drivers for the need to increase packaging ink prices. Furthermore, a shortage of key raw materials for pigments, a shrinking supplier base, and solvent pricing impacted by alternative uses for ethanol, along with increases in other costs such as energy, freight, and labor, are all contributors.
"Though we continue to improve our efficiencies and reduce internal costs through the Six Sigma and Lean processes, these measures cannot totally compensate for current rising raw material and energy costs," Pettifor said. "We will maintain our commitment to technology leadership by developing new value-added products that can help our customers reduce their operating costs and grow their businesses."
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